Publication date: 27 Jun 08 |
Source: THE TAX INSTITUTE
Australia’s premier professional tax body, the Taxation Institute of Australia, has welcomed the Federal Government’s decision to amend Family Trust Election rules from July 1, 2008, as opposed to its original intent of introducing the changes retrospectively for the 2007-08 financial year.
President of the Taxation Institute, Sue Williamson, said she was pleased to see the Government had listened to the concerns of the Institute and its members about the planned retrospective changes.
A Bill presented to Parliament late last week stated that a Family Trust test individual can be varied for the 2007-2008 year, but after that time, the test individual will revert back to who it was prior to the change.
“It is encouraging that the Government moved away from its original intent of introducing retrospective legislation, as many small business people and farmers had acted to the letter of the law regarding Family Trust Elections would have been exposed,” Ms Williamson said.
“However we remain disappointed that the Government did not completely rethink its decision in this area and scrap the changes all together.
The amendments reverse measures that were introduced to ensure less complex law in this area. Members of the Taxation Institute are pleased that the retrospective element of the amendment has been removed but continue to struggle with the need for the amendment at all, particularly as it is difficult to see how the amendments will result in any revenue savings. ”
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Sue Williamson, Taxation Institute of Australia on 0411 646 783
Dr Michael Dirkis, Taxation Institute of Australia on 0417 400 349